KSB wants to run a new programme. Estimated fees to be paid by a student is 8000.00. Fixed cost for the programme is expected to be 140,000.00 per anum while variable cost per student is estimated at 4000.00. Expected enrolment is 100 students. A. What is the contribution per student? B. What is the c/s ratio? C. ascertain the number of students to enrol to breakeven D. Ascertain the enrolment fees value at breakeven point E. What is the margin of safety.

KSB wants to run a new programme. Estimated fees to be paid by a student is 8000.00. Fixed cost for the programme is expected to be 140,000.00 per anum while variable cost per student is estimated at 4000.00. Expected enrolment is 100 students. A. What is the contribution per student? B. What is the c/s ratio? C. ascertain the number of students to enrol to breakeven D. Ascertain the enrolment fees value at breakeven point E. What is the margin of safety.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 16EB: Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two,...

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